No proposal to impose import duty on wheat, sugar: Scindia

NEW DELHI: The government today said it is not considering to impose import duty on sugar and wheat at this moment.

"The Department of Commerce does not propose to levy duty on import of sugar at this stage," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to Rajya Sabha.

The sugar industry had been demanding an import duty on white sugar to protect local mills from sliding prices. Sugar prices have declined sharply to Rs 30 a kg in the retail market of the national capital from Rs 48 a kg in mid-January.

Duty-free imports of raw and white sugar is allowed till December this year. India, the world's second largest producer and biggest consumer, has imported over six million tonnes of sugar since February last year to augment domestic supply.

"Currently, sugar is being imported at zero duty under Open General License (OGL) through EDI ( Electronic Data Interchange) ports subject to registration with APEDA," Scindia said.

In a separate reply, the minister said: "Department of Commerce has not proposed any imposition of import duty on wheat."

India produced a record 80.71 million tonnes of wheat in 2009-10 surpassing the previous year's record of 80.68 million tonnes.

Food Ministry had proposed to impose about 40 per cent import duty on wheat but an empowered group of ministers had rejected it because of inflation.